When spending less ‘leads to spending more’

Research from Norwich Union suggests that Britons’ zeal for a bargain as they flock to the shops for the January sales could risk them encountering serious debt.

The data states that 55 per cent of shoppers are proud to boast about a bargain they have found during the sales, with 27 per cent unable to wait for their next “bargain hit”.

Cesarina Holm-Kander, financial expert and presenter of Channel 4’s Your Money or Your Wife, told the Reading Chronicle: “What we don’t realise is that while we are spending less on single items, we are spending much more frequently – what used to be an occasional shopping trip has become a weekly activity for many British women.”

She added that this could explain why despite a growing popularity in bargain shopping, increasing numbers of consumers are landing themselves in debt that they cannot cope with.

The news follows research from Marks & Spencer suggesting that 51 per cent of cardholders in the UK have transferred balances on credit cards in order to make their debts more manageable.